Wall Street really likes to make words, in the early years there was "FAANG", and now it is popular "Magnificent 7" - the name comes from Hollywood's classic 1960 western drama "The Brave Seven Dragons" (which was remade again a few years ago, starring Denzel Washington and Star-Lord).
Seven Dragons added Microsoft, Nvidia and Tesla to FANNG's 5 companies, removing Netflix.
In a few years, Netflix hit the ceiling, and Microsoft Nvidia and Tesla relied on AI and new energy to stand in the C position.
The Coatue report released a few days ago, when reviewing the capital market, mentioned that the return of the "Magnificent 7" in the first half of 2023 was close to 80%, compared with the other 493 companies, with the "seven own power" to pull the return of 85% of the S&P 500 companies. In Coatue's words, "Tech valuations back to earth."
Compared with technology Internet companies, including energy, finance, real estate, medical and other companies are fully crotch-pulling.
With the development of AI, "Magnificent 7" as a whole should continue to lead the S&P500, hoping that the other side of the ocean can also "back to earth" as soon as possible.